It seems that the simplified tax system wasn’t really simple after all. The ATO have decided that the simplified tax system will no longer operate from 2007–08 and later income years.
It’s been replaced by the small business entity provisions. You can continue to use the concessions that were in the STS if you are a small business entity. If you are a small business entity:
* you can choose from a wider range of concessions
* you can choose to use only those concessions that suit your business needs, and
* you no longer need to notify the Tax Office of your eligibility or your choice to use the concessions.
What is a small business entity?
You will be a small business entity if you carry on a business and your business turnover (‘aggregated turnover’) is less than $2 million.
Aggregated turnover is your annual turnover plus the annual turnover of any businesses you are connected to or affiliated with. The aggregation rules determine if the turnover of another business entity needs to be included with your turnover. The aggregation rules are similar to the former STS grouping rules.
Confused? Go to the ATO website for clarification (then you will be confused!)
Next BAS due
